When you read this, you probably have heard that China is doing away with its requirement that foreign automakers need a 50:50 Chinese partner before they can make automobiles in the Middle Kingdom, the only legal way to avoid the country’s egregious 25% import tax. You will also have heard that this will open the gates to Tesla’s ultimate domination of the world’s largest car market, and especially of the world’s largest electric car market. If you haven’t heard, you certainly will.

There is only one problem: It is not true. Car companies indeed will be able to build EVs on Chinese soil, and on their own, but they won’t get around the tax, and therefore won’t be competitive with indigenous products. [Continue Reading]

Hopping on the Chinese EV bandwagon, and trying to comply with looming tough EV mandates in China, U.S. carmaker Ford has signed a joint venture agreement with Zotye Auto to make low-cost electric cars in China. Investors in Californian carmaker Tesla should closely study this agreement.

The jointly produced cars won’t be sold as Ford cars, but under “a new brand,” Ford group vice president Peter Fleet told Reuters. Why would Ford give up the strong brand cachet it has, and embark on the long, arduous, and expensive schlep to build a new brand nobody has ever heard of? Simple answer: [Continue Reading]

Welcome to Episode 2 of the China NEV Weekly, where we look at the latest New Energy Vehicles from China. While Tesla fans may have to wait years for their Model 3, there rarely is a week without new EVs, cranked-out by bustling Chinese OEMs. This week in CNW: NextEV goes downmarket, an (oh, dear) electric coffee car, EVs for less than the (possibly expiring) federal tax credit, and blue is the new green, also in red China.